Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Q2 2006 Earnings Presentation
14 slides from Shell's earnings presentation, Sep 8, 2006
Slide 1: Delivery and growth - Portfolio update
Delivery and growth - Portfolio update Chief Executive Jeroen van der Veer International media conference Royal Dutch Shell plc
Slide 2: Disclaimer statement
Disclaimer statement This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking s
Slide 3: Delivery and growth
Delivery and growth • Satisfactory Q2 2006 financial performance CCS net income $6.3 billion +36% Cash returned to shareholders $4.6 billion • Delivering on our strategy Good progress at major projects • Portfolio development Major chemicals and unconventionals projects launched
Slide 4: Strategy
Strategy Context More upstream, Growth energy demand profitable downstream • Cash generation + reinvestment • Portfolio choices • Environment + sustainability Competitive Returns • Unconventionals + renewables • Competition • Downstream includes chemicals Priorities Delivery + growth • Top quartile
Slide 5: New positions: 2006
New positions: 2006 SURE Northern JV Choren Draugen VW/Iogen Ukraine Energy BTL CO2/EOR biofuels study JV Turkey marketing BlackRock JV Iogen biofuels China Bitumen potential KPI MOU Potential Motiva ONGC MoU expansion Singapore Sonatrach Chemicals MoU BC-10 NWS-Ichthys; pre-emption Crux Qatar Pearl
Slide 6: Downstream - strategic growth in Singapore
Downstream - strategic growth in Singapore Building on strengths… • Largest Shell refinery – Bukom >460k barrels per day capacity • Largest Shell petrochemical production centre in Asia Pacific Bukom Refinery Growing with investments… • New world-scale ethylene cracker & mono ethylene glycol plant •
Slide 7: Growth potential in unconventionals
Growth potential in unconventionals • Integrated projects Bintulu • Shell technology • Oil sands • GTL • <5% of current production • ~10-15% of production by 2014
Slide 8: Gas-to-liquids Qatar: Pearl; Shell Canada: AOSP Expansion Phase 1
Gas-to-liquids Qatar: Pearl Shell Canada: AOSP Expansion Phase 1 • ~ 3 bln boe resources • > 1bln boe resources • 1.6bcf/day; 120 kboe/d NGLs • Expansion from 155kb/d to ~255kb/d • 2 x 70 kb/d GTL trains • Upgrader expansion plus pipelines • DPSA 100% Shell • 47% Royal Dutch Shell • Final investment
Slide 9: Pearl GTL
Pearl GTL Integrated Gas to Clean liquid Offshore gas Liquids Complex products North Field Ras Laffan GTL fuel blends Upstream Downstream Gas production, transport & treatment 140kb/d clean liquid products & fuels • Naphtha & GTL fuel • ~ 120kboe/d NGLs & ethane • Paraffin & kerosene • Dry gas feeds
Slide 10: Delivery and growth - Portfolio update
Delivery and growth - Portfolio update Chief Financial Officer Peter Voser Royal Dutch Shell plc
Slide 11: Q2 2006 results highlights
Q2 2006 results highlights Q2 2006 Q2 2005 $ bln $ bln CCS earnings 6.3 4.6 +36% Basic CCS earnings per share (US$) 0.98 0.69 +42% Cash from operations* 11.9 8.7 +37% Dividend per share (euro) 0.25 0.23 9% *Cash from operations excluding working capital, taxation and taxation paid
Slide 12: Balanced use of cash
Balanced use of cash H1 2006 Cash In H1 2006 Cash Out $23.9 bln $23.9 bln Increase in Debt 1.5 Divestments 0.7 5.4 Working Capital 4.0 Buy backs 3.9 Dividends DACF 21.5 2.9 Deals Capital 7.6 Investment
Slide 13: Surplus cashflow returned to shareholders
Surplus cashflow returned to shareholders Dividends and buybacks $ bln • Dividend growth 20 – Dividend per share +9% H1 06 v. H1 05 Dividend phasing – increase above long-term policy and RD minority payment • Buybacks 10 – $4 bln year to date – to continue subject to oil prices and group capital req
Slide 14: Delivery and growth - Q&A
Delivery and growth - Q&A Royal Dutch Shell plc